If Foreign Taxes on Foreign Income Exceed U

question 86

True/False

If foreign taxes on foreign income exceed U.S. taxes on foreign income, the excess foreign taxes are credited against U.S. taxes in the current year.

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Definitions:

Ledger Float

The time difference between when a check is written and when it is actually deducted from the payer's account.

Collection Float

The time period between when a check is deposited into a bank account and when the funds are available.

Lockbox System

A service offered by banks to companies for the collection of payments from customers, speeding up the process of receiving and depositing checks.

Collection Float

The time between when a check is deposited into a bank and when the amount is credited, affecting cash flow management.